New restrictions on executive compensation and dividend payouts made such aid less palatable to bank managers.
Next week's annual report will include that sum alongside a £1.1m salary – and, if last year's annual report is anything to go by, £463,000 of pension contributions, a short-term bonus (£3.5m a year ago) and compensation for dividend payments from shares locked up in bonus schemes (£1.2m a year ago).
Looking to head off this fight, Summers says Obama's Treasury Department will put in place "strict and sensible conditions on CEO compensation and dividend payments until taxpayers get their money back".
Zandi thinks he has a better solution: Give the Big Three the $34 billion they've requested in two tranches, with restrictions on government compensation and dividend payments and an equity stake in the companies for Uncle Sam.
Several lobbyists said the Treasury's model contract acknowledges the possibility that Congress could impose new requirements on recipients of the money, and some Democratic lawmakers have talked about further restricting executive compensation, shareholder dividends or other uses of the money as part of the deal.
In other words, the amount they can spend on employee compensation, shareholder dividends, underwriting, marketing, and other non-health-care activities is limited.
And because they can't tap into the Troubled Asset Relief Program the government's bailout kitty for U.S. banks they're also not tied down by its restrictions, including executive compensation limits and dividend payments to Uncle Sam.
Mr. Lawsky said that because the transactions made companies look richer than they otherwise would, some were diverting reserves to other uses, like executive compensation or stockholder dividends.
LONDON - The Bank of England is calling for British banks to cut their employee compensation and shareholder dividends as a way to bolster their capital reserves in the face of sluggish earnings, tight debt markets and the European sovereign debt crisis.
The chief executive, John S. Varley, and the president, Robert E. Diamond Jr., were determined to keep the government from taking a stake in exchange for a capital infusion that came with restrictions on dividends, compensation and lending.
